NE: Greenyug to Co-locate Bio-based Chemical Plant at ADM Facility
21 Jun, 2016
Greenyug LLC recently announced that it will build an industrial-scale ethyl acetate manufacturing facility adjacent to Archer Daniels Midland Co.’s wet mill corn processing facilities in Columbus, Nebraska. Greenyug has formed a subsidiary, Prairie Catalytic LLC, that will own and operate the facility. Prairie Catalytic has recently executed a conditional commitment with USDA Rural Development for a loan guarantee under its Business and Industry Loan Guarantee program. This facility will position it as a renewable supplier of ethyl acetate. ADM’s corn wet mill in Columbus will supply the project with bioethanol feedstock and other services. Construction of the facility is anticipated to start in late 2016 with production set to begin about a year later.
"At Greenyug, we see bioethanol as an excellent feedstock to produce value added bio-based chemicals such as ethyl acetate. Securing a reliable and efficient source of quality raw materials is one of the final steps in scaling Greenyug’s patented ethyl acetate technology. We are excited to locate our facility next to ADM’s world-class corn processing plant," said Sagar B. Gadewar, president and CEO of Greenyug. "We look forward to the Prairie Catalytic plant satisfying market demand for renewable specialty chemicals manufactured in a sustainable, environmentally sound, and cost-competitive manner.”
“Agreements like this help us maximize the utilization of our corn processing assets and allow us to deliver greater value for our shareholders,” said Paul Woolard, director of commercial development for ADM. “We are excited to work with partners like Prairie Catalytic to bring new innovations like bio-based ethyl acetate to the market.”
“We are excited that Greenyug LLC has chosen Columbus, Nebraska, as the site of its next manufacturing plant,” said Gov. Pete Ricketts. “Their substantial investment and the many high-paying, quality jobs will have a major positive impact on the community, along with their decision to locate next to Archer Daniels Midland Company’s Columbus facilities which could pave the way for a potential value-added campus in the future.”
Greenyug developed its patented technology at its Santa Barbara, California, research facility and continued the scale-up at its fully integrated demonstration plant in India. Greenyug has developed a proprietary platform to add value to bioethanol by upgrading it into a variety of biobased chemicals with broad market appeal. Greenyug ethyl acetate, the first of such products, is a widely marketed specialty solvent used extensively in products such as paints, coatings, pharmaceuticals, adhesives and a variety of consumer goods. Ethyl acetate has a global market of more than $4 billion. The market for ethyl acetate is growing faster than GDP because of its desirable properties. Greenyug ethyl acetate will be the first commercially available in industrial quantities to be entirely sourced from renewable feedstock. Greenyug will present its technology at the Fuel Ethanol Workshop and National Advanced Biofuel Conference held in Milwaukee, Wisconsin, on June 22. Heartland Bank, headquartered in Little Rock, Arkansas, is serving as the lender of record for the Columbus project. Stern Brothers & Co., a women-owned business enterprise headquartered in St. Louis, Missouri, is serving as financial advisor to Greenyug LLC and placement agent for the project financing.